
Quantitative Economics
Journal Of The Econometric Society
Edited by: Bernard Salanié • Print ISSN: 1759-7323 • Online ISSN: 1759-7331

Edited by: Bernard Salanié • Print ISSN: 1759-7323 • Online ISSN: 1759-7331
Quantitative Economics: Jul, 2014, Volume 5, Issue 2
Richard Blundell, Rosa L. Matzkin
The control function approach (Heckman and Robb (1985)) in a system of linear simultaneous equations provides a convenient procedure to estimate one of the functions in the system using reduced form residuals from the other functions as additional regressors. The conditions on the structural system under which this procedure can be used in nonlinear and nonparametric simultaneous equations has thus far been unknown. In this paper, we define a new property of functions called control function separability and show it provides a complete characterization of the structural systems of simultaneous equations in which the control function procedure is valid. Keywords. Nonseparable models, simultaneous equations, control functions. JEL classification. C3.
December 11, 2025
We are deeply saddened by the passing of Kate Ho, the John L. Weinberg Professor of Economics and Business Policy at Princeton University and a Fellow of the Econometric Society. Kate was a brilliant IO economist and scholar whose impact on the profession will resonate for many years to come.